revolution begins

Macquarie’s Adrian Wood says the arrival of Chevron confirms that one of the world’s biggest oil companies potentially sees the assets as commercial “in the fullness of time”. He rates Beach at outperform.

He notes the price paid by Chevron implies a value on Beach’s shale gas properties of US$905 per acre, comparing favorably to the US$806 value implied by Beach’s acquisition of Adelaide Energy in 2011 and the US$272 million implied by BG Groups investment in some of Drillsearch Energy Cooper Basin assets.